With the steep decline of residential construction over the last decade, home buyers are purchasing older homes than before. According to a new report from the National Association of Realtors, the typical home purchased last year was built in 1993. These 28-year-old homes are often in need of repairs or renovation, making them more affordable to first-time buyers.
“Young buyers are more likely to feel the financial pressure of rising home prices and the lack of affordable inventory [and] more willing to buy a fixer-upper,” said Jessica Lautz, NAR’s vice president of demographics and behavioral insights.
Nearly a quarter of first-time buyers say they compromised on the condition of the home their purchased to save money and move to a location they preferred.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.125 percent.
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